You are provided with the following information: You are provided with the following information

You are prov-ded with the following information: Cumulative production Direct labour needed to make first machine Learning curve Direct labour costs Direct material costs Fixed cost in total, absorbed on a per unit basis Required: Value 1 OOO hours R5 per hour RI 800 per machine R12000 Q.2.1 Q.2.2 Q.2.3 Using the learning curve theory and the information provided above, calculate the expected average unit cost of producing: 8 machines. Q.2.1.1 32 machines. Q.2.1.2 [Round your answers off to two decimal places, where applicable.) Your friend is interested in finance. Explain to him/her what the Learning Curve Theory is. List the three ratios that can be used to test the reliability of a cost equation. (24) (3)